The city of Des Moines should appeal a ruling that its franchise fee was an illegal tax to the Iowa Supreme Court, a judge said today in denying, for the fourth time, the city’s request to decertify the case as a class-action lawsuit.

Polk County District Court Judge Joel Novak ruled in June that the city collected a franchise fee over and beyond the legitimate costs of administering the program, in which customers were charged a fee on their utility use. It has been estimated that the ruling could cost the city $50 million in refunds. Note: Estimated refund corrected at 3:20 p.m. September 2

However, Novak said in today’s ruling that he will not determine the exact amount of the refund or how it will be administered until after an appeal to and ruling by the state Supreme Court.

Novak also said today that the city “reads too much” into portions of his June ruling, particularly whether he would be willing to reconsider three previous opinions that deny city motions to decertify the class of plaintiffs in the case and whether he would allow individuals to opt out of a settlement.

In order to avoid an appearance that he was serving his own interests by ruling against the city, Novak said in the June opinion that he would waive his right to a refund or return the money to the city. He said today that individuals can waive their right to a refund, but that no one can opt out of the class.

Novak also said today that he would not order the city to draft a new franchise fee ordinance, which was legalized in emergency legislation passed in May by the Iowa legislature, denying a motion to do so by attorneys for Lisa Kragnes, the Des Moines woman who brought the initial lawsuit.